USDA Loans : Eligible Geographic Areas

USDA Loan Eligibility Is Location-Based

Only two major programs — the VA loan and USDA mortgage — allow for no down payment.

The VA loan requires eligible military service, but the USDA loan’s eligibility is based on something else: location of the property.

These loans were created to spur economic development in less-dense areas of the U.S. (hence the “other” name — Rural Development, or RD loan). As such, buyers can use the loan within certain geographical boundaries as published on USDA’s eligibility maps.

Some states are almost entirely eligible, as this view of Wyoming reveals.

A full 97% of U.S. land mass is USDA-eligible, representing 109 million people. What’s more, some solidly suburban areas qualify because the maps haven’t been significantly updated since the 2000 census.

Maps are set to be reviewed again in 2017, so it’s wise to obtain your USDA loan before these very generous geographic boundaries change.

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